After long, winding road trip Uber and Lyft driver pay raises go into effect
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After facing opposition from local and state leaders, a pay raise for people who drive for rideshare companies like Uber and Lyft goes into effect Dec. 1. And the Minnesota Uber/Lyft Drivers Association, or MULDA, which led the lobbying effort for higher pay, is now preparing for an influx of new drivers.
On the Monday before the pay raise is set to go into effect, MULDA’s Bloomington office is busy as at least ten people wait in the lobby to receive help on their Uber and Lyft accounts.
Mardice Washington, one of three employees at MULDA, helps a driver whose account had been deactivated after he says he unknowingly created a duplicate account.
“We have people that need help with the account or the language barrier of taking the test that they may need help with. So we do it all, we try to help the drivers,” Washington said.
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It’s taken more than a year to get to this point.
The two rideshare companies previously threatened to leave after claiming that previous proposals would make it too difficult for them to do business in the state.
The state legislature passed a bill which contained higher pay and driver protections in 2023, however, Gov. Tim Walz vetoed the bill.
Later that year, the Minneapolis city council passed its own measure. But that was vetoed by Mayor Jacob Frey.
Both Frey and Walz expressed support for higher pay and protections for drivers, but said they had reservations with the plans that passed at the local and state levels.
In 2024, the council passed a new ordinance, and was able to override another veto. However, a statewide law passed later in the year took precedence over the city ordinance.
The state law sets a minimum pay of $1.28 per mile and $.31 per minute statewide, slightly lower than the city ordinance.
MULDA president Eid Ali says he anticipates his office will become busier with more drivers as new wages take effect.
The new rates are welcome after a long road to get here, but Ali says many of the drivers in his office today are still facing challenges.
“I would say 98 percent of what we are assisting here is deactivated accounts,” Ali said.
He says some drivers say their accounts have been deactivated by the rideshare companies due to rider complaints or low acceptance rates. A low acceptance rate means a driver isn’t accepting enough rides on the rideshare app. The drivers argue the deactivation process is unfair and happens too quickly.
An Uber spokesperson says drivers receive several notifications from Uber before their account is deactivated.
In a statement, Uber said in part, “Unless there is a serious safety report or emergency situation requiring immediate action, we inform drivers that they are at risk of losing access to the platform.”
A Lyft spokesperson said “When deactivations happen, our goal is for drivers to feel supported and respected throughout a process that is timely, transparent, and fair.”
The bill passed by the state legislature earlier this year regulating the rideshare companies’ labor and pay standards, included codifying procedures for deactivating accounts.
Both Uber and Lyft have a process allowing drivers to appeal deactivation decisions with some exceptions.
Ali says it’s that appeals process keeping his office busy, as drivers like Ugas Abdinur are trying to get back to work, and looking to a near future of more pay.
“I just want to be able to find money that I can help myself and my family back home,” Abdinur said.
Ali says as other rideshare companies have entered the market, he looks forward to continuing working with Uber and Lyft. And says he hopes to see more support from the two major rideshare companies.
“We have nothing against Uber, Lyft or any other entity that is in Minnesota, but we just want at the end of the day, we just want to make sure that those drivers are treated fairly and are getting the services that they were promised based on the legislation that was passed,” Alid said.
Uber estimates riders in the Minneapolis-St. Paul area can expect to see about a 25 percent increase in the cost of trips, but pricing may change.
The company also said it’s in the process of contracting with a local nonprofit that will act as a resource for drivers, providing on-the-ground services.
